Madison wanted to grab some ducks (ducks for ducking other Jeeps… yes, it’s a thing… no, I don’t understand it) on Thursday, so I went to the store.
I came home with three candles. Fresh Cut Evergreen. Balsam Fir. And Cedar.
It’s on.
When is too soon to start listening to Christmas classics on Spotify?
Appraisal Update
A quick note about the new appraisal format before I mention rates and the market last week.
As noted a few weeks ago, we’re now ordering the new format. The deadline for delivery to the GSEs has been pushed back, but we continue to order the new format.
I spoke with an excellent local appraiser last week, and there is a learning curve for them. He’s done more than 10 thus far, and it’s getting better and easier each time, but it is a big change for the industry.
We’re also seeing some revision requests coming out of the quality control reviews. Nothing major, but we’re seeing those.
Why am I mentioning this?
Having a couple of weeks to obtain an appraisal is helpful as we work through this learning curve.
Can we still do rush or quick appraisals? Absolutely.
That said, if there’s time relative to the closing date to obtain a two-week contingency, that would be helpful for a bit as the industry works through these changes.
Market Notes
Another decent week for mortgage rates and the mortgage market.
Rates moved to the lowest levels we’ve seen in five weeks, with most programs ending about an eighth of a percentage point lower than the previous week.
As expected, the Fed did not adjust short-term rates.
The narrative generally coming out of the meeting is that they will take a wait-and-see approach to the upcoming economic data before determining what the next move might be.
Does this mean we’re out of the woods?
Not at all.
Rates generally rise more quickly than they fall. But for now, there doesn’t appear to be notable sentiment for an imminent short-term hike in December.
We also continue to see notable weakness in tech stocks. That has really been the driver of interest rates over the past couple of weeks.
Money has moved out of tech stocks and into the safer haven of fixed-income assets.
Where does that leave us?
Continued stock weakness could help, but unless or until inflation starts ebbing, I think it will be difficult for mortgage rates to move notably lower.
Looking Ahead*
Hope everyone enjoyed Halloween and had a great weekend.
Please feel free to reach out with any mortgage-related questions or needs.
-Steve-
*All loans are subject to credit approval and program guidelines.